How to Finance an HVAC System

Save

Heating, ventilating and air conditioning, or HVAC, systems are useful in regulating temperatures and air quality in buildings. However, owning or replacing an HVAC system requires that you have enough cash to cover acquiring and installing the system. If you lack sufficient savings, you can seek other sources of financing to purchase your preferred HVAC system.

  • Confirm the cost of the HVAC system you want to install, and explore the possibilities of financing the whole amount, or part of it, with your savings. Check whether your mortgage equity -- the difference between your home’s market value and the mortgage balance -- is sufficient to secure a home equity loan. This is viable collateral for a home improvement loan meant to finance an HVAC system.

  • Confirm whether your bank has an HVAC financing product and survey other financial institutions, such as credit unions and mortgage companies, that offer home improvement loans. Spread your considerations to Department of Housing and Urban Development’s low-cost financing options, such as a Section 203(k) mortgage. The Section 203(k) mortgage is essentially a financing and refinancing product that offers as much as $35,000 for spending on home repairs and improvements. Borrowing such subsidized loans that target HVAC system installations, among other home improvements, saves you a lot of money.

  • Visit your preferred financial institution and apply for a home improvement loan or HVAC financing. In fact, Federal Housing Administration’s PowerSaver Pilot 203(k) program, which offers homeowners up to $25,000 in low-cost financing, is more appropriate if you plan to install an energy-efficient HVAC system. According to a PowerSaver pilot program description in the HUD website at the time of publication, you must ensure your energy-efficient HVAC system costs more than $3,500 to qualify for the funds.

  • Scrutinize the payment plans that HVAC companies have in place to identify the most affordable offers. HVAC companies understand that this type of equipment is costly, and many are willing to offer buyers innovative financing offers. Some HVAC companies offer to link their customers to bank financing, while others, such as Service Experts and LMC Service Solutions, provide both bank and in-house sources of finance. Service Experts and The Home Depot do not charge annual fees and prepayment penalties, and they allow customers to make low monthly installments.

References

  • Photo Credit stask/iStock/Getty Images
Promoted By Zergnet

Comments

Resources

You May Also Like

  • What Is an HVAC System?

    HVAC is an abbreviation for Heating, Ventilation and Air Conditioning. HVAC systems are the main mechanical infrastructure of a building and provide...

  • FHA vs. Conventional Home Appraisals

    Diligent homebuyers take a good look at a property's condition before making the big-ticket purchase. Likewise, mortgage lenders want to know what...

  • How to Claim a Tax Credit for New Central Air Conditioning

    You can turn a new central air conditioner into tax relief as well as comfort. As of publication, you can take advantage...

  • How to Become an HVAC Wholesaler

    HVAC stands for heating, ventilating and air conditioning. It can refer to large systems used in industrial offices and other sites where...

  • How to Design an HVAC System

    The design of a heating, ventilation and air conditioning system (also known as an HVAC) is important because it has such a...

  • How to Start an HVAC Business

    If you are a contractor looking to branch out or an entrepreneur looking to fill a need, you may be thinking about...

  • Financing an HVAC Small Business

    An HVAC small business can be a profitable enterprise, but before you can earn money you will likely need to finance your...

  • How to Finance My New Geothermal System

    Using geothermal heating and cooling as an environmentally friendly way to heat a home in the winter and cool it in the...

  • Florida State HVAC Certification

    The State of Florida Agency for Workforce Innovation estimates that the demand for heating, ventilation and air conditioning technicians in the state...

  • Home Heating System Grants

    A fundamental need of all individuals is proper warmth. Home heating systems thus are a basic component of a residential dwelling. The...

  • How to Refinance Student Loans

    Refinancing student loans right after graduation is an important step to getting a better interest rate, and consolidation can usually only be...

  • Scholarships for HVAC Training

    Scholarships for HVAC training are available through specific trade schools, online and through private organizations. Prepare resumes and letters of recommendation to...

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!